Lagos residents are spending a staggering N14 trillion every year just to fuel generators, according to Biodun Ogunleye, Lagos State Commissioner for Energy and Mineral Resources. Speaking at the Lagos Energy Summit, Ogunleye revealed that over 4.5 million generators are in use across the state, collectively consuming around 16 billion litres of fuel annually.
This heavy reliance on private power generation reflects a deep-rooted energy crisis that has plagued the city for decades. Ogunleye said the data came from an in-depth study carried out in collaboration with SEforALL, which exposed the true scale of the state’s power deficit. According to the findings, these generators pump out 38 million tonnes of carbon emissions each year — far more than the combined national emissions of countries like Togo, Rwanda, and Gabon.
He highlighted that 72% of households in Lagos own at least one generator, 94% of small businesses depend on them, and 76% of market clusters cannot function without generator power. In total, these machines churn out an estimated 21,000 megawatts of electricity — but at great cost and with major inefficiency.
The commissioner warned that the situation is made worse by vandalised infrastructure, low investments in the power sector, persistent liquidity challenges, and unreliable billing practices. “The burden has been unfairly placed on the people, who are forced to find their own solutions,” he said.
He also announced that with the recent passage of the Lagos Electricity Law, the state now has the legal framework to manage its own electricity market independently of the national grid. As part of its long-term energy reform, Lagos is exploring a diversified mix that includes solar, gas, hydro, and other clean sources. The goal is to add 6,000 megawatts of new capacity over the next three years through a mix of grid-scale and captive power projects.
Additionally, Lagos is moving to retrofit 22,000 streetlights to reduce strain on the grid and improve energy efficiency. “We’re not waiting for a broken system to fix itself. We’re building a new one,” Ogunleye declared.
Governor Babajide Sanwo-Olu, speaking at the same event, expressed frustration over the country’s prolonged power issues. He insisted that it is unacceptable for Nigerian homes to still lack electricity in this era. He described Lagos as a megacity ready to solve the power access challenge and turn its energy vision into a working reality.
“Our ambition is to make Lagos a 24/7 economy, powered by clean, reliable, and affordable energy,” Sanwo-Olu stated. He stressed that this mission aligns with global climate targets and Nigeria’s national energy transition strategy.
Former Minister of Power, Barth Nnaji, who delivered the keynote, urged the federal government to leverage Nigeria’s enormous natural gas reserves to power the country. He compared Nigeria’s underutilisation of its 210.5 trillion cubic feet of gas to Algeria, which powers its entire population with a fraction of that amount. According to him, tapping into this resource is essential if Nigeria hopes to build plants, create jobs, and grow its economy sustainably.
He warned that failure to convert this natural advantage into real energy development would stall national prosperity, stressing that as GDP grows, energy output must also increase to keep pace.
